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Industrial associations in Hosur welcome State budget

Staff Reporter

`Establishment of world class infrastructure will attract more investment'

Hosur: Industrial associations in Hosur have welcomed the State budget presented on Saturday. In a statement issued here on Monday, the president of the Hosur Small and Tiny Industries Association (HOSTIA), N. Dhanasekar said that the introduction of the Value Added Tax regime from January 1, 2007, would check the cost of the products manufactured due to the tax effect on inputs. This will in turn make the products cost competitive against the onslaught of threats from across the globe due to globalisation.

The association thanked the Chief Minister for abolishing resale tax once again with effect from January 1, 2007. The revival of capital investment subsidy was a big impetus for the small and tiny entrepreneurs, as this would definitely provide necessary motivation and support for the growth of the Small Scale Industry sector in the State.

The Government's announcement of a new industrial policy in consultation with the industrial associations concerned would provide the right direction and fillip to the growth of the industry.

Similarly, the creation of industrial corridors and establishment of world-class infrastructure would attract more investment. HOSTIA has asked the Government to initiate steps on proposals for the development of Hosur such as establishment of Special Economic Zone and another industrial estate with necessary accommodation for the Small and Tiny Industries by SIPCOT and SIDCO, establishment of IT Park, arrival of major automobile industries and a clear-cut vision plan to improve infrastructure and implement the long pending Hogenakkal Water Supply Scheme.

Krishnagiri District Small and Tiny Industries Association, president, G. S. Ganesh, has thanked the Chief Minister for presenting a tax-free budget. The Government's decision to implement VAT was a great relief to the industrial sector. The floor level of taxation agreed between the States as fixed by the committee concerned should be strictly followed and commodities should also be clearly classified. It was believed that the prices of commodities would see a downward trend after January 1, 2007. However, there had been no announcement about the IT corridor or Special Economic Zone at Hosur. Necessary allocation should be made to implement these projects at the earliest he added.

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